Zuno Gen Insurance promises to cover damage to cars due to blended fuel use

Mumbai: Zuno General Insurance on Wednesday said it has become the first in the industry to launch a product to cover damage to cars caused by blended fuel use.

The product, 'Fuel Guard', is a motor insurance add-on pitched as "an additional layer of protection for specified engine and fuel-system components against accidental and unforeseen physical damage caused directly by manufacturer-approved blended fuel".

The product comes amid a heated debate on the impact of the mandatory use of ethanol in fuels. The government has admitted to reverses on mileages, while there are also claims of other damage, including to engines.


The insurer said in a statement that the product focuses on supporting consumers through a "changing mobility and fuel landscape, while giving them greater choice, reassurance and relevant protection".

Cars bought after April 2023, where the vehicle manufacturer has approved the specific blended fuel and maintained manufacturer's prescribed maintenance schedule, with no unauthorised engine or fuel-system modifications can avail cover under the add-on.

The new add-on can be opted for with applicable private car package, standalone own damage and bundled policies, including 3-year long-term policies, it said.

"As the mobility ecosystem evolves, insurance protection needs to evolve with it. We continuously look at how changes in mobility are shaping customer expectations and ownership experience," Zuno General Insurance's Managing Director and Chief Executive Shanai Ghosh said.